India: Sponge iron prices under pressure as market participation slows

• Sponge iron prices largely stable amid weak demand
• Trade volumes decline sharply on subdued buying activity

Sponge iron prices largely remained stable across regions on 21 May, with slight decrease of INR 50-150/t observed in the central and eastern markets. In the key Raipur market, prices declined by INR 50/t to INR 25,950/t ex-works. Weak participation and subdued trading activity continued to prevail in the market today, while buying activity remained restricted to need-based procurement, largely at lower price levels.

Trade activity was slow, with minimal enquiries and very few deal finalisation. The finished steel segment also reflected similar weakness, with dull demand and no major bulk bookings. Softening raw material prices further weighed on sentiment, prompting buyers to delay procurement, while sellers remained less aggressive. Overall, the market remains under pressure, with weak demand and muted trade activity expected to persist in the near term.

Trading activity witnessed a sharp slowdown today, with total traded volumes declining to around 6,700 t, compared to nearly 18,700 t in the previous session. Most deals were executed in limited quantities, indicating cautious buyer participation and subdued trade flow across regional markets.

Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
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